Cybersecurity threats from hackers have been around for decades, but the issue has been brought to the forefront after recent ransomware attacks on vital U.S. infrastructure and supply chains. Cybersecurity companies are continuously developing new platforms, technologies, and strategies to keep one step ahead of rapidly-evolving global security threats. The research and development (R&D) involved in all of these processes qualify for the R&D Tax Credit. If your company is innovating in the cybersecurity space, you are most likely eligible for significant tax incentives.
Employee wages, raw materials and supplies, cloud computer rental, and third-party contractor costs associated with R&D activities are considered qualified research expenses (QREs). Companies can receive refunds of up to 22% of total QREs through federal and state tax credits, depending on the state in which your business operates.
Examples of qualifying activities:
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
Benefits for the R&D Tax Credit vary from state to state. Get an accurate estimate of what your potential state tax credit!